





19 3F* 


January 27, 1912 


To the Public Service Commission, 
Second District, State of New York. 


Gentlemen: 


1. In the following report we have included, for convenience as refer- 
ence, extracts from the Public Service Commissions Law and a brief account 
of the hearing held by your honorable body on September 7, 1910. 


EXTRACTS FROM PUBLIC SERVICE COMMISSIONS LAW 


2. ‘“‘Sec. 64. Appheation of article. This article shall apply to the 
manufacture and furnishing of gas for light, heat or power and the 
furnishing of natural gas for light, heat or power, and the generation, 
furnishing and transmission of electricity for hight, heat or power. 

Sec. 65. Safe and adequate service; just and reasonable charges; unjust 
discrimination; unreasonable preference. 1. Every gas corporation, every 
electrical corporation and every municipality shall furnish and provide such 
service, instrumentalities and facilities as shall be safe and adequate and in 
all respects just and reasonable. All charges made or demanded by any such 
gas corporation, electrical corporation or municipality for gas, electricity or 
any service rendered or to be rendered, shall be just and reasonable and not 
more than allowed by law or by order of the commission having jurisdiction. 
Every unjust or unreasonable charge made or demanded for gas, electricity 
or any such service, or in connection therewith, or in excess of that allowed 
by law or by the order of the commission is prohibited. 

2. No gas corporation, electrical corporation or municipality shall 
directly or indirectly, by any special rate, rebate, drawback or other device 
or method, charge, demand, collect or receive from any person or corporation 
a greater or less compensation for gas or electricity or for any service rendered 
or to be rendered or in connection therewith, except as authorized in this 
chapter, than it charges, demands, collects or receives from any other person 
or corporation for doing a like and contemporaneous service with respect 
thereto under the same or substantially similar circumstances or conditions. 

3. No gas corporation, electrical corporation or municipality shall make 
or grant any undue or unreasonable preference or advantage to any person. 
corporation or locality, or to any particular description of service in any 
respect, whatsoever, or subject any particular person, corporation or locality 
or any particular description of service to any undue or unreasonable preju- 
dice or disadvantage in any respect whatsoever. 

See. 66. General powers of commissions in respect 1 to gas and electricity. 
Each commission shall within its jurisdiction: * 

12. Have power to require every gas corporation, electrical corporation 
and municipality to file with the commission and to print and keep open to 
publie inspection schedules showing all rates and charges made, established 
or enforced or to be charged or enforeed, all forms of contract or agreement 
and all rules and regulations relating to rates, charges or service used or to 


1 


be used, and all general privileges and facilities granted or allowed by such 
gas corporation, electrical corporation or municipality; but this subdivision 
shall not apply to state, municipal or federal contracts. Unless the commission 
otherwise orders, no change shall be made in any rate or charge, or in any 
form of contract or agreement or any rule or regulation relating to any rate, 
charge or service, or in any general privilege or facility, which shall have been 
filed and published by a gas corporation, an electrical corporation or munici- 
pality in compliance with an order of the commission, except after thirty 
days’ notice to the commission and publication for thirty days as required 
by order of the commission, which shall plainly state the changes proposed 
to be made in the schedule then in force and the time when the change will 
go into effect. The commission, for good cause shown may allow changes 
without requiring the thirty days’ notice under such conditions as it may 
prescribe. No corporation or municipality shall charge, demand, collect or 
receive a greater or less or different compensation for any service rendered 
or to be rendered than the rates and charges applicable to such services as 
specified in its schedule filed and in effect at the time; nor shall any corpora- 
tion or municipality refund or remit in any manner or by any device any 
portion of the rates or charges so specified, nor to extend to any person 
or corporation any form of contract or agreement, or any rule or regulation, 
or any privilege or facility, except such as are regularly and uniformly 
extended to all persons and corporations under like circumstances. The 
commission shall have power to preseribe the form of every such schedule, 
and from time to time prescribe by order such changes in the form thereof 
as may be deemed wise. The commission shall also have power to establish 
such rules and regulations to carry into effect the provisions of this sub- 
division as it may deem necessary, and to modify or amend such rules or 
regulations from time to time.’’ 


3. The obvious purposes of these sections are: 


a. To permit proper and reasonable discrimination by gas 
and electrical corporations and municipalities in the making of 
rates justified by special conditions and circumstances unusual so 
far as the general service is concerned; and to prevent such dis- 
crimination in rates or otherwise as shall be unjust to any one or 
all consumers or the public served. 


b. To enable the Commission, in its discretion, to require 
the filing and publishing of schedules of rates. 


c. To enable the Commission to prescribe the form of every 
schedule and, from time to time, such changes therein as it may 
deem wise, and 


d. To enable the Commission to establish such rules and regu- 
lations as it may deem necessary in this matter and to modify or 
amend the same from time to time. 


HEARING OF SEPTEMBER 7, 1910 


4. At the session of the Public Service Commission, Second District, 
State of New York, held at the Capitol, Albany, N. Y., on July 7, 1910, the 
following resolution was adopted: 


‘““RESOLVED, That a hearing be and the same is hereby 
appointed to be held at the Albany office of the Commission, the 
Capitol, on the 7th day of September, 1910, at 2 o’clock in the 


2 


afternoon, in the matter of entering a proposed order (1) requiring 
every gas corporation, electrical corporation and municipality to 
file with the Commission and print and keep open to public inspec- 
tion, schedules showing all rates and charges made, established or 
enforced, or to be charged or enforeed, all forms of contract or 
agreement and all rules and regulations relating to rates, charges 
or service used or to be used, and all general privileges and 
facilities granted or allowed by said gas corporation, electrical 
corporation or municipality; and (2) prescribing the form of 
every such schedule; and in the further matter of establishing rules 
and regulations to carry into effect the provisions of paragraph 12, 
section 66, of the Public Service Commissions Law. 


5. <A copy of this resolution was sent to all gas and electrical corpora- 
tions and municipalities, with an invitation to send a representative to the 
hearing. They were also requested to submit to the Commission in advance 
of the hearing a statement of their rates and charges then in force, on blanks 
prepared by the Commission. 


6. At the hearing the Chairman in his opening address stated that the 
Commission intended, as soon as details could be perfected, to require the 
filing of such schedules of rates and charges as it is empowered to do by 
the statute, and that the purpose of the hearing was to consult with the cor- 
porations and municipalities of the state as to how the matter could be 
handled so as to accomplish, in the most satisfactory manner to everybody 
concerned, the results which the legislature very clearly had in mind should 
be accomplished. 


7. After a general discussion of the matter it was agreed that the entire 
subject be referred to a committee for consideration and report. 
As members of this committee the Chairman appointed: 


Baer Crowell, 
W. E. Griggs, 
C. F. Hunter, 


to represent the Commission, and, at the suggestion of the corporations and 
municipalities represented, appointed. 


J. C. DeLong, 
TR. Beal: 

Jd: T.. Cowling, 
J. T. Hutchings, 
M. W. Offutt, 
Beni Laine. 
ALC omith: 


to represent them. 


ORGANIZATION OF COMMITTEE 


8. Immediately following the conference the appointees met for organi- 
zation, electing Mr. J. C. DeLong, Chairman, and selecting Mr. C. H. B. Chapin 
as Secretary. It was also decided that the committee should be known as 
the ‘‘Committee on Gas and Electric Schedules, Second Puble Service Dis- 
trict, State of New York.’’ The secretary was directed to send a circular 
letter to each gas corporation, electrical corporation and municipality, operat- 
ing within the jurisdiction of the Public Service Commission of the Second 
District, of which the following is a copy: 


“‘September 12, 1910. 


‘““Gentlemen: 


‘On September 7, 1910, a conference was held between the Public Service 
Commission of the Second District and the Gas and Electric Companies operat- 
ing within the Second District, in the matter of Gas and Electric Schedules. 

‘As a result of the conference a Committee on Gas and Electrie Schedules, 
representing the companies operating within the Second District and the 
Publie Service Commission of the Second District, was appointed. The names 
of the members of this committee appear on the letterhead. 

‘‘In the course of its deliberations, the committee will probably meet in 
different parts of the state for the purpose of consulting with the companies 
in various sections in order to become acquainted with the particualr condi- 
tions under which they are operating. The committee may find it necessary 
to ask the companies for certain information from time to time. It is hoped 
that in all matters which may arise, the companies will feel entirely free to . 
discuss all of their conditions with the committee stating their views as to 
the preparation and filing of schedules of rates, as it is only through a frank 
discussion of the matter that results can be reached which will be absolutely 
fair to all. 

‘*Very truly yours, 


‘““COMMITTEE ON GAS AND ELECTRIC SCHEDULES, 
‘‘Charles H. B. Chapin, Secretary.’’ 


OUTLINE OF WORK 


9. In making such a complete investigation of the subject as it deemed 
essential, the committee found it necessary: 


a. To analyze the circumstances and conditions in respect to 
the furnishing of gas and electricity, the service rendered in con- 
nection therewith and the use thereof. 


b. To study the existing methods of charge and define the 
appropriate meaning of terms commonly used in connection with 
them. 


c. To classify the purchasers of gas and electricity according 
to the provisions of the statute and according to conditions of service 
and use. 


d. To consider the subject of the filing with the Commission 
and the publishing of schedules of rates by gas and electrical cor- 
porations and municipalities with a view to determining the prac- 
ticability of such filing and publishing. 


e. To devise forms and to recommend methods for their con- 
struction and use, if the filing and publishing of schedules of rates 
by gas and electrical corporations and municipalities appeared to 
be practicable and advisable. 


These several phases of the question are taken up in this report in the 
sequence given. 


SERVICE AND SERVICE CONDITIONS 


10. Among the numerous definitions given in the Standard Dictionary 
for the word ‘‘service’’ we find the following: ‘‘The supply of some general 
and reeurrent demand.’’ 


11. Manufacturers ordinarily produce and sell one or more articles or 
commodities. They may or may not produce enough of such articles to supply 
the demand. This is entirely optional with them. They may produee all of 
their supply during one period of the year and close down during the balance 
of the year. They may operate their plants in such manner as they see fit. 
They do not render or sell a “‘service.”’ 


12. On the other hand, railroad and street railroad corporations furnish 
one thing—transportation. They are required by law, charter or franchise 
to supply this one thing in such manner and to such an extent as will meet 
the general demand for it. They must operate not in the manner most con- 
venient to them, but in respect to the general demand. They therefore render 
or sell a service, but they do not produce or sell any article or commodity. 


13. Pubhe service corporations and municipalities operating gas and 
electric plants produce and sell the commodities gas and electricity, but they 
are permitted to do so only under the condition that an adequate supply shall 
be available at all times to meet the demands of the public. They therefore 
also render a service, but in connection with the gas and electric business 
the word ‘‘service’’ is commonly used to include both the commodity and 
the availability of the supply. 


14. It is at onee evident that a fundamental difference exists between 
the gas and electrie business and the manufacturing business, and also between 
the gas and electric business and the railroad business, and therefore no 
just comparison can be made between the methods for charging for gas or 
electric service and the article produced by a manufacturer or the service 
rendered by a railroad. 


15. As already stated, the word ‘‘service’’ in the gas and electric 
business consists of two distinct elements, namely, the commodity gas or 
electricity and the plant capacity which may be drawn on at any or all 
specified times. 


16. The extent of the service furnished any consumer consists therefore 
in the quantity of gas and electricity consumed, plus the amount of plant 
capacity maintained on his account and subject to his demand. These are 
the two fundamental factors, which, considered either singly or in combina- 
tion, constitute the basis of all methods of charge. For the sake of brevity 
they are hereafter referred to as Quantity and Demand. 


17. Gas and electric service may be sold under different conditions, 
depending on whether the consumer is free to call for the demand element 
at any and all times, whether at certain specified times or at such times not 
specified in advance, as may be convenient to the furnisher. These conditions 
create six fundamentally different kinds of service, as follows: 


Continuous Service Service available at any and all times. 

Limited Period Service Service available only at certain speei- 
fied hours of the day or seasons of the 
year. 


Optional Service Service to be rendered or discontinued 
for periods at call of either producer 
or consumer. 


Resale Service Gas or electricity generated, transmit- 
ted or furnished by one corporation or 
municipality for distribution and resale 
by another corporation or municipality. 

Auxilary Service Service to be rendered for. limited or 
unlimited periods as auxiliary to. con- 
sumer’s plant. 


Emergency Service Service to be rendered only in case of 
breakdown of consumer’s plant. 


18. Although the circumstances and conditions surrounding the fur- 
nishing of gas or electric service vary to some extent in the case of each 
individual purchaser, there are certain characteristics which are more or less 
constant for all installations in which the uses of the service are the same or 
very similar. For example: Service for lighting is commonly required during 
the hours of darkness, and the demand is largely influenced as to time by 
the season of the year or the state of the weather. Conversely, service for 
power is chiefly required during daylight hours, and the demand continues 
fairly constant throughout the year and is not influenced by the state of 
the weather. 


19. Such facts must be taken into consideration in formulating rates, 
and it is quite common practice to establish rates for lighting service and 
different rates for power service. In many instances the division is carried 
further and sub-classes are created, as for example, residence lighting and 
commercial lighting, and so on. 


20. In a description of the various classes of service to which different 
rates apply, it is necessary that the kind of service should be stated and that 
the circumstances and conditions surrounding the furnishing or use of the 
service should be clearly indicated. The various kinds of service are given 
in paragraph 17. The circumstances and conditions surrounding the fur- 
nishing or use of the service may be indicated by the use of such terms as 
‘‘lighting,’’ ‘‘power,’’ ‘‘residence lighting,’’ ‘‘commercial lighting,’’ and so 
on, or by the use of such technical terms as ‘‘on peak,’’ ‘‘off peak,’’ ‘‘load 
factor,’’ ‘‘power factor,’’ ete. 


‘ 


METHODS OF CHARGE 


21. There are many different methods in use for charging for electric 
service while there are comparatively few for charging for gas service. To 
obtain uniformity of expression and to ex»vlain briefly these different methods 
of charge, the committee has adopted the definitions given in Appendix A. 
We recommend that they be approved by you and given as wide publicity 
~ as possible, for while these terms are, at the present time, all in common use 
their exact meaning ‘varies in different localities, and we believe that with 
the endorsement of the Commission the meaning which we have given to these 
terms will become standard. 


CLASSIFICATION OF PURCHASERS 


22. Purchasers of gas and electric service may be divided into four 
classes, according to the provisions of the statute and according to the con- 
ditions of service and use: 


A. Municipalities, the state and the federal government. 


B. Persons or corporations who require service under cirecum- 
stances and conditions which are the same or substantially similar 
to those under which service is generally furnished. This class 
may be divided into sub-classes. 


C. Persons or corporations who require service for new uses 
and under circumstances and conditions which are unknown and 
cannot be defined or determined until after a trial period. 


D. Street or other railroad corporations taking service pri- 
marily for the propulsion, lighting and heating of cars, and gas or 
electric corporations taking service primarily for resale. 


FILING AND PUBLISHING OF SCHEDULES 


23. The advisability of a requirement that schedules of rates be filed 
and published and the practicability of such filing and publishing, are dis- 
cussed separately for each of the above classes 


CLASS A 


° 


24. According to the provisions of the statute, gas and electrical cor- 
porations and municipalities may not be required to file with the Commission 
or publish in their schedules rates applying to gas or electricity furnished, 
or service rendered in connection therewith, to purchasers of Class A. We 
have, therefore, omitted this class from further consideration. 


CLASS B 


25. It appears to us to be practicable for corporations and munici- 
palities furnishing gas or electricity to prepare schedules uniform in con- 
struction and arrangement of matter contained, showing their service classi- 
fications so far as may be practicable, and the rates, rules and regulations 
applying to each such classification. 


26. Corporations and municipalities furnishing gas or electric service 
are, to a greater or less extent, continually in competition with substitutes 
for such service. There will, however, be consumers of this class, particu- 
larly in cases of large and unusual installations, where, in order to fit the 
business, new service classifications must be provided, the need for which 
does not appear until the service is required. 


27. Generally in such instances, the corporation or municipality furnish- 
ing gas or electric service is in active competition with the manufacturers 
of boilers, engines and other apparatus for use in an isolated plant. These 
competitors are prepared to close promptly a contract for sale of their goods, 


and if the gas and electrical corporations and municipalities are to have a 
reasonable chance to secure this business, they must, in this respect, be 
prepared to act with equal promptness. 


28. There will also be instances where service will be required imme- 
diately and under exceptional and urgent conditions caused by accidents, 
sickness, emergencies of various kinds, or general calamity. 


29. We believe it desirable that corporations and municipalities fur- 
nishing gas or electric service be afforded every reasonable opportunity to 
secure such business, as it tends to improve their condition and may, there- 
fore, become a benefit to all purchasers and to the community served. 


CLASS C 


30. The business done with purchasers of Class C is of an experimental 
nature. New methods and conditions of use of gas and electric service fre- 
quently arise, and in many cases must be tried out before a service classifica- 
tion can be established. The practical way of doing this is by means of an 
experimental installation. The service classifications applying to such 
experimental installations cannot well be SNe and Pees for in 
advance, 


31. We believe that no injustice results to any consumer by corporations 
or municipalities taking on business of the character outlined in paragraphs 26 
to 30 inclusive, and at service classifications based on considerations differing 
from any service classifications they may have in force. Therefore, we recom- 
mend that the requirements for filing and publishing of schedules should be 
flexible enough to allow new service classifications to be established on short- 
time notice under some general regulation to be provided by the Commission, 
broad enough to cover the needs of the business. 


32. We recommend, for business taken on with consumers of Class C, 
that in the first instance a copy of contract be filed with the Commission, 
but not published, but that the corporation or municipality making such con- 
tract, on or before the expiration of one year from the date of commencement 
of supply, shall either establish in its schedule, a classification applicable to 
such contract. or give notice that the contract will be terminated at its date 
of expiration and the particular contract in question shall be considered 
the same as an unexpired contract and treated as recommended in sub- 
sections d and e, paragraph 36. 


33. For the publication of the service classifications, rates, rules and 
regulations which apply generally throughout the territory served by a cor- 
poration or municipality, we have formulated the Schedules of Rates as shown 
in Appendix B. We believe it practicable that all changes, other than those 
for the establishment of new service classifications, should become effective 
only after thirty days’ notice to the Commission and the public, or upon 
shorter notice under special permission from the Commission. We recom- 
mend that the Commission provide a general regulation which will permit 
the establishment of new service classifications, rates, rules and regulations 
applying thereto upon one day’s notice to the Commission and the publie. 


CLASS D 
34. We deem it appropriate and desirable that copies of all contracts 
made by gas or electrical corporations or municipalities with purchasers of 
Class D be filed with the Commission for its. information. 


8 


35. We ean see no necessity, however, for including in schedules the 
service Classification, rules, regulations and rates applying to purchasers of 
Class D. It is improbable that this class of service can be justly compared 
with other classes of service by reason of its magnitude, load factor and other 
operating conditions, and to publish these rates might be misleading and 
unjust to the purchasing corporation and would serve no useful purpose. 


GENERAL CONCLUSIONS REGARDING FILING AND PUBLISHING 
OF SCHEDULES 


36. In ease a final order is entered in this matter we recommend: 


a. That, as recommended herein, the Schedules of Rates shall 
include all service classifications, rules, regulations and rates which 
apply generally throughout the territory to the furnishing of gas 
and electricity and the service rendered in connection therewith. 


b. That no change in the Schedules of Rates may become 
effective until after same shall have been filed with the Commission 
and kept open for publie inspection for a period of thirty days, 
except in cases where change is permitted by a regulation of the 
Commission or upon special permission obtained from the Commis- 

sion to make effective upon less notice. 


c. That gas and electrical corporations and municipalities be 
required to file with the Commission certified copies of their con- 
tracts with (1) street and other railroad corporations for elec- 
trical energy for use primarily for the propulsion, lighting and 
heating of ears, and (2) with other gas and electrical corpora- 
tions for gas or electrieal energy for use primarily for resale, but 
that they be not required to publish the rates applying to such 
business or include them in their schedules. 


d. That where unexpired contracts, with purchasers of any 
class, at special rates, exist, the rates applying in such cases need 
not be ineluded in the schedules, but that a list. of such contracts 
be filed with the Commission, giving the date of execution and the 
unexpired period which each has still to run. 


e. That at the expiration of any such contract it shall be 
terminated, or, if renewed, shall be considered as new business, and 
the service classifications, rates, rules and regulations applying to 
such business shall be included in the schedule of rates. 


FORM AND CONSTRUCTION OF SCHEDULES 


37. The form which we recommend for filing and publishing a sehedule 
of rates and an outline of the manner in which it is to be constructed will 
be found in Appendix B. In formulating this schedule three primary con- 
ditions have been considered: : 


a. That schedules will show in uniform order of arrangement 
all information in regard to service classifications, rates and rules 
and regulations applying thereto as actual or prospective con- 
sumers may need in order to determine for themselves the service 
best adapted to their conditions and the rate obtaining therefor. 


b. That schedules shall give to the Public Service Commission 
full information regarding the service rendered and the rates 
applying thereto. 


c. That the form for schedule be such as to cover all classes 
of business available alike for a single service or a great variety of 
service, and that its preparation shall not impose any unreasonable 
financial burden upon any reporting corporation. 


It is believed that the form recommended will be found to fulfill these 
conditions. ; 


38. For such schedules we submit the following recommendations: 


a. That the schedule be of loose-leaf form, thereby enabling 
additions to, eliminations from, or other changes to be made from 
time to time in a simple manner and at a minimum cost. : 


b. That the size of sheets be 8” by 11”, thereby conforming 
in size to other similar schedules required by the Commission to be 
filed with it. 


c. That the loose sheets of which schedules are to be com- 
posed be supplied to the corporations and municipalities by the 
Commission, so prepared that the information required may be 
given by filling in by typewritting m the blank spaces, thereby 
insuring uniformity in statement of matter contained and lessening 
the cost to the reporting corporation or municipality. 


d. That full and explicit instructions be prepared and distrib- 
uted by the Commission prescribing the proper method for filling 
out the schedule and filing the same with the Commission, and of 
posting for public inspection. Our recommendations in detail for 
‘uch instructions are given in Appendix C. 


e. That the filing of schedules with: the Commission be not 
considered as preventing any corporation or municipality from pub- 
lishing all or any part of such schedules in pamphlet or other form 
for advertising purposes. Schedules of size suitable for filing are 
not suitble for general distribution, and we believe that the cor- 
porations and municipalities desiring to do so should be permitted 
to publish their rates for advertising purposes in such form as they 
may find most convenient. This privilege should be clearly explained 
so that there may he no misunderstanding regarding it. 


GENERAL CONCLUSIONS 


39. For gas and electrical corporations and municipalities to publish 
rates in a schedule uniform in size, construction and arrangement of matter 
contained is practically without precedent, but we believe that such publi- 
cation is practicable to the extent as recommended herein, and, moreover, 
that they should be filed with the Commission and posted for public inspec- 
tion. However, to do this under the statutory requirement which prohibits 
change being made in schedules upon less than thirty days’ notice, except 
upon a regulation or special permission of the Commission, may have an 
effect upon business which cannot be foretold, and it is somewhat problem- 
atical how such requirement would work out when practically applied. 
Furthermore, it may be found in practice that some of our other reeommenda- 


10 


tions, if adopted by the Commission, should be changed in some respects in 
their application in order to meet conditions which may develop after schedules 
of rates as herein recommended are published and filed. 


40. We do not, therefore, feel prepared to recommend to the Commission 
the advisability of entering a final order at this time, requiring gas and 
electrical corporations and municipalities to file and publish rates in schedule 
form. We do recommend, however, that a supply of blank forms for such 
schedules, as devised by this committee, be prepared by the Commission, and 
that a sufficient number be furnished to each reporting corporation or munici- 
pality, with a request to fill them out according to the instructions suggested 
in Appendix C, and return them on or before a certain fixed time, and that 
thereafter all changes which may be made in due course of business be 
reported to the Commission in the form and as required in the instructions, 
but without regard to the statutory requirement of notice, or to the obtaining 
of special permission from the Commission, and that this course’ be followed 
for at least a period of one year. 


Respectfully submitted, 


COMMITTEE ON GAS AND ELECTRIC SCHEDULES.. 


_ APPENDIX A 
Definitions of Various Methods of Charge for Gas and Electric Service 


1. FLAT RATE 


The term Flat Rate is applicable to any method of charge for gas or electric 
service which is based on the consumer’s installation of energy-consuming devices 
or on a fixed sum per consumer. Meters are not used. 


2. DEMAND RATE 


The term Demand Rate is applicable to any method of charge for gas or 
electric service which is based on the maximum demand during a given period 
of time. The demand is expressed in such units as kilowatt or horse power or 
rate of flow of gas. Maximum-demand indicators or graphic meters are used. 


3. METER RATE 


The term Meter Rate is applicable to any method of charge for gas or 
electric service which is based on the amount used. This amount is expressed 
in such units as kilowatt hours of electricity or cubic feet of gas. Integrating 
meters or graphic meters are used. 


4, CONSUMER’S OUTPUT RATE 


The term Consumer’s Output Rate is applicable to any method of charge 
for gas or electric service based on the consumer’s output. The unit of the 
consumer’s output may, for example, be a gallon of water pumped, a barrel of 
flour or a ton of ice made, etc. 


5. TWO-CHARGE RATE. 


The term Two-Charge Rate is applicable to any method of charge for gas 
or electric service in which the price per unit of metered gas or electric energy 
for each bill period is based upon both the actual or assumed quantity of 
gas or electric energy consumed and the actual or assumed capacity or 
demand of the installation. 


6. THREE-CHARGE RATE 


The term Three-Charge Rate is applicable to any method of charge for gas 
or electric service in which the charge made to the consumer for each bill period 
consists of (a) a sum based on the quantity of gas or electric energy consumed, 
(b) a sum based upon the actual or assumed capacity or demand of the installa- 
tion, (c) a charge per consumer. 


: 7. STRAIGHT LINE 


The term Straight Line as used in connection with and as applied to any 
method of charge indicates that the price charged per unit is constant; i. e., 
does not vary on account of any increased or decreased number of units. 
The total sum to be charged is obtained by multiplying the total number of 
units by the price per unit. 


8. BLOCK 


The term Block as used in connection with and as applied to any method 
of charge indicates that a certain specified price per unit charged for all or any 
part of a block of such units and reduced prices per unit are charged for all or 
any part of succeeding blocks of the same or a different number of such units, 
each such reduced price per unit applying only to a particular block or portion 
thereof. The total sum to be charged is obtained by multiplying the number of 
units in the first block by the price per unit for that block and adding thereto 
the number of units in the second block times the price per unit for that block 
and so on until the sum of the units falling with the different blocks equals the 
number of units to be charged for. 


9. STEP 


The term Step, as used in connection with and as applied to any method of 
charge, indicates that a certain specified price per unit is charged for all or any 
part of a specified number of units, with reductions in the price per unit based 
upon increases in the number of units according to a given schedule. The total 
sum to be charged is obtained by multiplying the total number of units by the 
price applying for this number of units or by the primary price and deducting 
the discount applying for this number of units. 


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APPENDIX B 
Recommendations Relative to Form and Construction of Schedules 


Schedules are to be made up of loose-leaf sheets of size 8” by 11” 
sufficient in number to cover matter to be contained, and when complete, so 
fastened together that any sheet may be removed therefrom and a new sheet 
substituted therefor, or additional sheets added thereto. 


A complete form for a schedule consists of: 
One sheet on which to show matter required to be shown on title page. 
One or more sheets on which to give: 


a. Table of contents of the tariff. 
b. Description of the territory to which the schedule applies. 


One or more sheets on which to show classification of service. 
One or more sheets for each rate table. 
One or more sheets on which to give the rules and regulations. 


One or more sheets on which to give definitions of terms and to 
explain reference marks used in the schedule. 


TITLE PAGE 


The title page shall show in addition to such other information as the 
Commission may require: 


a. Number of schedule with the prefix P. S. C2 N. Y.— 
for example, the first schedule would be numbered P. §. C.—2 
N. Y.—No. 1. 


b. The name of the corporation or municipality issuing the 
schedule. 


c. Whether the schedule is for gas or electric service, or both. 


d. The territory or territories supplied. This description should 
be in sufficient detail to clearly identify the territory or territories. 
The name of each place should be prefixed by proper descriptive 
title, for example: ‘‘City of — ””; ““Town of —-——’’; ‘‘ Village 
of ”’; ete. The word ‘‘territory’’ is intended to cover only 
the particular territory to which the schedule applies, and not the 
entire territory which may be served by the issuing corporation or 
municipality. In cases where the space provided on the title page 
is insufficient to show in detail this requirement, then a brief 
description should appear on the title page with reference to the 
sheet or sheets in the body of the schedule where such information 
in detail will be shown. 








e. The day, month and year on which the schedule is issued. 


f. The day, month and year on which the schedule is to take 
effect. 


g. The name and official title and address of the officer by 
whom the schedule is issued. 


TABLE OF CONTENTS 


The table of contents should give: 

A full and complete statement in alphabetical order of the location where 
information under general headings by subjects will be found, specifying 
sheet number or numbers, for example: 


(Tass LPatiOle Ole eL VEG. ae foc cules ion keds cheese ae ok Sheet.-— 


UA DLCeee 1 MR IRRCOL LS GTES 5s ares org a 26,3 ay kV eign orcs aes Bes Sheet — 


DESCRIPTION OF TERRITORY 


(For use when not shown on title page.) 


CLASSIFICATION OF SERVICE 


On the classification of service sheets give under appropriate subhead- 
ings, ‘‘Lighting,’’ ‘‘Power,’’ ‘‘ Heating,’’ ‘‘Fuel,’’ ete., the various kinds of 
use for which the corporation or municipality furnishes gas or electricity 
and service in connection therewith; opposite each such classification show, 
in the column provided, the number of the rate table applying to each such 
kind of use, also the number of the sheet on which such rate is to be found. 

We consider it would be desirable to have a classification applicable for 
general use throughout this state to the furnishing of gas and electricity for 
different uses; such classification to provide a class rating for each such 
purpose of use as is universally recognized as being of sufficient importance 
to- warrant the application of a specific base rate or a particular method of 
charge on account of the circumstances and conditions of quantity or supply, 
surrounding the rendering of service necessary to furnish gas or electricity 
therefor. 

We find it impracticable at this time to offer any recommendation, but 
it is believed that when rates and charges of the corporations and munici- 
palities are reported in schedules uniform in construction and arrangement, 
that the practicability of compiling sueh a publication should be considered. 

Numerous corporations or municipalities now provide specific rates or 
particular methods of charge for gas or electricity furnished and service 
rendered in connection therewith for the following purposes of use: 


LIGHTING 


Residence 
Street posts 
Porches 
Toilets 
Apartment houses 
Summer cottages 
Private barns 
Garages 


15 


Commercial Lighting 
Stores ’ 
Stores open 6 nights a week until 10 p. m. 
Hotels 
Theatres 
Hospitals 
Churches 
Pienie parks 
Factories 
Offices 
Political banners 
Billboards 
Signs 
Outline lighting 
Window lighting 
Moving-picture lighting 


Other Classifications Under Lighting 
Permanent installation 
Temporary installation 
Temporary installation for summer only 
Different communities 
Rural districts 
Summer resorts 
Incandescent 
Multiple are lighting 
Series are lighting 
Tungsten lighting for show windows 
Tantalum 


Also classifications based on whether 
customer owns meter 
eustomer owns installation, 

and still others based on 
Business of the consumer. 


POWER 


Primary service 
High-tension service 
Low-tension service 


Permanent installation 
Temporary installation 


On-peak service 

Off-peak service 
Ten-hour service 
Twenty-four-hour service 
Daylight service 

Day service 

Season service 


Different communities 


16 


Ownership of meters 


Maximum load 
Size of installation 


Use of service 
Storage battery 
Automobile 
Tunnel construction 
Elevators 
Coffee mills 
Meat grinders 
Fan motors 
Heating 
Cooking 


It is important that corporations and municipalities should carefully 
classify the different purposes of use which their business has developed 
and to each such classification apply a base rate—sometimes one rate will 
apply to all classifications, or one rate to several classifications, and other 
rates to other classifications, and not necessarily a different rate for each 
classification. 


RATE TABLE 


On the rate table sheets show a number or letter for each table, and 
throughout the schedule whenever such table is referred to, reference to it 
shall be made by its number or letter. Each rate table shall contain in the 
order of arrangement given, the following: 


a. Guarantee.—The amount of the guarantee, if any is 
required, and on what it is based. Under this heading shall be 
stated the amount of the minimum charge, if any is required. 
Example: ‘‘Guarantee of — K.w.h, per month,’’ or ‘‘Guarantee of 
— per month per K.w. connected,’’ or ‘‘Minimum monthly charge 
of — per month.”’ 


b. Rate.—The base or unit rate or rates or series of unit rates 
used in compiling the total charge to customer. When a system 
of discounts from a base rate is used instead of a series of unit 
rates, such discounts must-here be shown. Such discounts should 
not, however, be confused with maintenance and prompt-payment 
discounts. 


c. Maintenance Discounts.—If any discounts or reductions in 
unit rates are allowed in consideration of the consumer paying for 
lamp renewals or other maintenance charges, such discounts or 
reductions must be given under this heading with a clear explana- 
tion of the conditions under which such discounts are allowed. 


d. Prompt-Payment Discounts or Delayed-Payment Penalties. 
—If alterations in the price charged are made in consideration of 
the time within which bills are paid, such alterations should be 
given under this heading. 


e. Character of Service—Under this heading should be stated 
whether the service is continuous (24-hour service), whether service 
until midnight, ete.; whether the period of service is limited, such 


17 


limit constituting the basis of the rate; whether it is A. C. or D. C.., 
voltage, phase, frequency, etc.; whether it is optional service, aux- 
iliary service, breakdown service. 


f. Measurement.—Under this heading should be stated whether 
either the current or the demand, or both, are metered, and, if so, 
how. If either the current or the demand, or both, are not metered, 
state how the service charged for is determined and on what basis. 


g. Rules and Regulations.—Refer by number or letter to each 
of such rules and regulations as apply to the individual rate table. 


RULES AND REGULATIONS 


On the Rules and Regulations sheets give all the rules and regulations 
which in any way affect the furnishing of, in the first instance, and the 
continuance or discontinuance thereafter, of the service, each under a separate 
number or letter, so that any such rule or regulation may be readily identified 
and referred to by its number or letter. 


DEFINITIONS OF TERMS AND EXPLANATIONS OF REFERENCE 
MARKS 


On the sheets where information under this caption is to be shown shall 
be given an explanation of all technical terms used in the schedule. For 
example; explain the meaning of Watt, Kilowatt, Kilowatt Hour, Horse 
Power, ete. If symbols or abbreviations are used, explain their meaning. 
For example: K.w.h. = Kilowatt hour; Amp. = Ampere. 

When ratings are used, based on capacity of installation or a percentage 
thereof, a table of equivalents for estimating such ratings must be given. 
For example: One 16 C. P. Carbon Filament Lamp equals about 50 Watts. 
If such terms as Maximum Demand, Load Factor, Rated Capacity, Peak, etce., 
are used in the schedule, such terms should be explained under this caption. 

All definitions of terms and explanations of symbols, abbreviations or 
reference marks should be arranged in logical sequence and in such manner 
that they may be readily understood. 

The following illustrates how each sheet composing schedules of the form 
recommended is to be prepared before*being mailed to the corporations and 
municipalities for filling in for filing. 











Pees Ce eet ee or INGOs 







No supplement to this tariff will 
be issued except for the purpose 
of cancelling the tariff. 








(NAME OF CORPORATION OR MUNICIPALITY) 


SCHEDULE OF RATES 


FOR 





(GAS OR ELECTRICITY OR BOTH AS CASE MAY BE) 


Applying to the following territory 





Pcsuied ee eet ee : Effective— ee ak 
(MONTH DAY YEAR) (MONTH DAY YEAR) 

















By s 


(NAME OF OFFICER) (TITLE) 


(ADDRESS OF OFFICER) 


19 








——— e 3 PS), C2 Ne ¥.—_NO. = 
ORIGINAL SHEET NO. 1 








TABLE OF CONTENTS 


DESCRIPTION OF TERRITORY 





PATesOt wsSUG oe ey Te! Dios Meee Date effective Se et ies SE 
(MONTH DAY YEAR) MONTH DAY YEAR 


Issued by ——— ss ae Be et anereen eanda ion Sb Sa at 
(NAME OF OFFICER, TITLE, ADDRESS) 
Ot 


NR aby oy 


. 
% 
s 





P. S. C.—2 N. Y.—No. 








(NAME OF ISSUING CORPORATION OR MUNICIPALITY) ORIGINAL SHEET No. 2 


CLASSIFICATION OF SERVICE (or customer’s use) 








KIND OF SERVICE (or use) «tuba lela sea 
RATE TABLE PAGE 
LIGHT 
Date of issue. Date: effectives_—_—— = = : vs 
(MONTH DAY YEAR) MONTH DAY YEAR 
Issued by Lane eee Bee apo PS" ele. 





(NAME OF OFFICER, TITLE, ADDRESS) 


23 





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P. S. C.—2 N. Y.—No. 
(NAME OF ISSUING CORPORATION OR MUNICIPALITY) ORIGINAL SHEET NO. 3 








CLASSIFICATION OF SERVICE (or customer’s use) 


NUMBER 
RATE TABLE PAGE 


KIND OF SERVICE (or use) 


HEAT (OR FUEL) 





Date of issue Date effective——_— Pat 2 
(MONTH DAY YEAR) MONTH DAY YEAR 








Boned. bys = : = es 


(NAME OF OFFICER, TITLE, ADDRESS) 


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estes © ofa SS Sd 2% ee a Rat ss Com ein Y «NOs ee 
(NAME OF ISSUING CORPORATION OR MUNICIPALITY) ORIGINAL SHEET No. 4 








CLASSIFICATION OF SERVICE (or customer’s use) 


NUMBER 
RATE TABLE PAGE 


KIND OF SERVICE (or use) 


POWER 





Date of issue _ : 7 Date effective aes : 
(MONTH DAY YEAR) MONTH DAY YEAR 





[shied bye V7 > ae Re Se 
(NAME OF OFFICER, TITLE, ADDRESS) 


27 





eens Ga tatiN ce Vico NOP ee 





(NAME OF ISSUING CORPORATION OR MUNICIPALITY) _ ORIGINAL SHEET No. 5 





RATE TABLE NO. — 


1. Guarantee, (The amount of guarantee, if any is required, and 
on what it is based.) (Under this heading to be stated the amount of 
the minimum charge, if any is required.) 


2. The rate in cents for a unit of charge. 
3. Discounts, if any are allowed, and how computed. 


4. Allowances for prompt payment or penalty for delayed payment 
ot bills. 

5. Character of service: whether 24-hour or limited until midnight, 
ete.; whether alternating current or direct current voltage, phase, fre- 


queney, ete. Service limited to certain hours of day, on-peak, off-peak, 
optional service, auxiliary service, break-down service. 


6. Measurements; whether current is estimated or metered, and 
if so, how. 


7. Rules and regulations; reference to be given by rule number 
to such rules and regulations as apply to this rate table. 





Date of issue SS) oe SS : Date effective eke Ore. n 
(MONTH DAY YEAR) MONTH DAY YEAR 


Issued by————- Dh ERE CECI ee ME 8 A ONE 


(NAME OF OFFICER, TITLE, ADDRESS) 


29 








P. S. C.—2 N. Y.—NO. 
ORIGINAL SHEET NO. 6 





(NAME OF ISSUING CORPORATION OR MUNICIPALITY) 





RULES AND REGULATIONS 


All the rules and regulations, which apply generally to contracts 
for furnishing gas or electricity for light, heat, and power, and all the 
company’s rules and regulations in any way relating to service rendered, 
together with any particular regulations relating to a special contract 
for service rendered. The committee recommends that under this head 


extracts of the law be shown. 





Date of issue Date effective ales LSS Sys Xd ca 
(MONTH DAY YEAR) MONTH DAY YEAR 





Issued by pate es bc ASEAN eS eee 


(NAME OF OFFICER, TITLE, ADDRESS) 


31 








ee < eX ot 4 2 P. S. C.—2 N. Y.—NOo.___ 
(NAME OF ISSUING CORPORATION OR MUNICIPALITY) ORIGINAL SHEET NO. 7 





DEFINITIONS AND EXPLANATIONS OF REFERENCE MARKS 


ate Ot Sucre eo) YS, : Date effective ar 
(MONTH DAY YEAR) MONTH DAY YEAR 





ASSUEU. Dy seten nt fs rh os Sie chee Ee Se foe ee 


(NAME OF OFFICER, TITLE, ADDRESS) 


33 





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APPENDIX C 
Recommendations for Issuance and Filing of Schedules 


The form of schedules which we have recommended is given in Appendix 
B. Our recommendations for the issuance and the filing of schedules with the 
Commission and the posting for public inspection are as follows: 


a. That in the first instance the Commission have schedules 
prepared in blank form, furnishing to each corporation or munici- 
pality a necessary number of each of the sheets which collectively 
make schedules, as their necessities may require. 


b. That the Commission, in transmitting to these corporations 
and municipalities, enclose herewith full instructions for the con- 
struction and order of arrangement and filing of completed schedules. 


c. That the Commission in its instructions fix the time when 
such schedules are to take effect, also the time by which they must 
be filled in and returned to the Commission. 


d. That the instructions so to be issued by the Commission 
include directions fully explaining the manner in which changes 
may be made in schedules. When such change is to be made, either 
by amending the schedule by the issuance of new sheets to take the 
place of effective sheets, or by the addition of new sheets or by 
the issuance of a new schedule which is to supersede the schedule 
on file and in effect. Also instructions relating to the course to be 
pursued in case of change of ownership or operation of any gas or 
electrical corporation or municipality. 


e. In the form for schedules we have recommended that each 
sheet composing a complete schedule be issued as an original sheet 
to the particular schedule of which it is a part, and that each such 
sheet be consecutively numbered, commencing with number one for 
each schedule, and also that each sheet shall show the date of issue 
and effect. We further recommend that as occasion may arise requir- 
ing the rewriting of a sheet that this be done by showing on the top 
of the new sheet that it is ‘‘First Revised Sheet No. —’’ and that 
it cancels original sheet No. — of Schedule P. 8S. C—2 N. Y.— 
No. —, and that at the bottom of sheets show the dates of issue 
and effect. For example: If original Sheet No. 2 of Tariff P. 8S. C. 
—2 N. Y.—No. 1, is rewritten, the new sheet to be issued as First 
Revised Sheet No. 2, Cancelling Original Sheet No. 2 of Schedule 
P. S. C—2 N. Y—No. 1. If a further revision of the same sheet 
is later required, then such sheet is to be issued as Second Revised 
Sheet No. 2, Cancelling First Revised Sheet No. 2 of Schedule 
P. S..C.—2 N. Y.—No. 1. In ease a schedule required a sheet or 
sheets to be added, then such sheet or sheets to be issued bearing 
the same number as does the sheet or sheets which is or are to 


35 


precede such added sheet or sheets in the schedule with a letter 
affixed thereto. For instance, a new sheet added to follow Original 
Sheet No. 4 in Tariff P. S. C—2 N. Y—No. 1, would be issued as 
Original Sheet No. 4A to Tariff P. 8S. C—2 N. Y.—No 1. If two 
sheets, the second would be Original Sheet No. 4B to P. 8. C.— 
2 N. Y.—No. 1, ete. 


f. That corporations or municipalities, when transmitting for 
filing, copies or schedules or amendments thereto, also copies of 
contracts with railroad corporations or with other gas or electrical 
corporations or their list of unexpired contracts, shall accompany 
each such schedule, amendment, contract or list with a letter of 
transmittal of form to be provided by the Commission. 


g. That if corporations or municipalities require an acknowl- 
edgment or receipt of any such schedule, contract or list trans- 
mitted for filing, duplicate letter of transmittal, together with 
postage sufficient to repay the mailing cost, or an addressed 
stamped envelope, be enclosed herewith. 


h. That every corporation or municipality shall post in a 
conspicuous place in its main office, and in each of its branch 
offices, a notice to the effect that copies of the schedule of rates 
applying in the territory are on file and that they may be inspected 
by any one desiring so to do. : 


We recommend that the Commission, in providing for this notice, make 
it plain that it refers only to schedules of rates for general service, but is 
not to apply to contracts with railroad corporations and other gas or electrical 
corporations or to the list of special contracts the terms of which are not 


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